Analysis of charcoal market system in Handeni, Kinondoni and Magharibi "A" Districts, Tanzania
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Date
2021
Authors
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Publisher
Sokoine University of Agriculture
Abstract
This study aims to analyse the charcoal market system in Handeni, Kinondoni and
Magharibi A districts. Despite of the profits gained by charcoal actors in the value
chain, the actors are not paying charcoal government fees and unregistered, thus
making a significant loss of government revenues through royalties evasion. This
study analysed the roles of each actor in value chain, examined the profits gained by
each actor, analysed supporting functions and assessed enabling environments for
charcoal business in study areas. A cross-sectional study was conducted to analyse
the charcoal market system in study areas. Data were collected through questionnaire
surveys, Indepth interviews and focus group discussion. Results from descriptive
statistics show that among the interviewed respondents charcoal actors play a role of
paying the charcoal government fees; Charcoal wholesalers were nearly three thirds
(74.2%) while producers were less than half (47.1%) and one third (35.7%) were
retailers. Charcoal transporters were more than half (52.8%) played a role of
transporting charcoal with government payment documents while very few
consumers (9.2%) had received charcoal receipts from sellers. There was a high
statistical significant difference of profit gained between charcoal actors who were
registered and those who are not registered by using Man- Whitney test (P <0.01).
On supporting functions, descriptive analysis shows that about 23.5% of charcoal
producers from Handeni district trained on charcoal business. Charcoal wholesalers
(46.0%) from Magharibi A district accessed the bank loans. About 44.1% of charcoal
producers from Handeni district urged roads were in good to support the business.
All charcoal wholesalers from Magharibi A district used charcoal selling centres. All wholesalers found in Magharibi A district joined the charcoal groups. Most of
charcoal wholesalers (92.3%) from Magharibi A district urged market information
support charcoal business. All charcoal producers used earth mound kilns for
charcoal productions. Thematic and descriptive analysis used to assess business
enabling environments. Five themes emerged: Charcoal business registration,
movement documents, revenue collection and records, agreement between TFS and
DFNR- Zanzibar and unstainable charcoal production. Further, supporting functions
are unavoidable to make charcoal actors to pay government fees and register their
business. This study recommends that policy makers should develop charcoal trade
guideline between Government of Tanzania mainland and Zanzibar.
Description
Masters Dissertation
Keywords
Charcoal market system, Charcoal government fees, Charcoal wholesalers, Handeni - Kinondoni - Magharibi "A" Districts, Tanzania